Bitcoin price hits $23,300, will the bearish thesis be reversed?

Bitcoin price hits $23,300, will the bearish thesis be reversed?

Bitcoin price managed to break through and maintain its momentum above the $23,000 mark. Over the past week, the coin has shown bullish momentum. Over the past 24 hours, Bitcoin has shown little value, however, it has remained stable above its local support level.

The technical look of the royal coin also suggested that the bulls had taken control. If the price of Bitcoin manages to break the $24,000 price barrier and trade there for an extended period of time, the bulls could gain additional strength.

The cryptocurrency has long struggled to stay above the $24,000 price level.

Buyers also returned to the market and this helped Bitcoin continue its bullish thesis. However, there is always the possibility that Bitcoin could return to its chart if it trades below the $24,000 mark long enough. In that case, BTC could find support between $22,000 and $21,000 during the next trading sessions.

Bitcoin Price Analysis: Four Hour Chart

Bitcoin was priced at $23,300 on the four-hour chart | Source: BTCUSD on TradingView

BTC was trading at $23,300 at the time of writing. Over the past week, the price of Bitcoin has seen a rise of close to 11%, which has helped buyers re-enter the market. As soon as the demand increased, the price of Bitcoin also showed appreciation.

The current price can also be called a relief, because the moment the price of Bitcoin reached the $24,000 mark, the coin returned to the chart. Above-cost resistance for BTC was $24,000, which will ensure that BTC reaches the next price ceiling.

For the bearish thesis to be invalidated, BTC must recover $28,000. A decline from the current price can take the coin to $22,000 and then to $20,000. Bitcoin trading volume increased in the last session indicating increasing buying pressure in the market.

Technical Analysis

Bitcoin price hits $23,300, will the bearish thesis be reversed?
Bitcoin showed increasing buying power on the 4-hour chart | Source: BTCUSD on TradingView

The coin managed to maintain its bullishness thanks to the increase in the number of buyers. The technical outlook presented a similar picture on the four-hour chart. The price of Bitcoin has risen slightly over the past 24 hours as the coin has seen an increase in buying pressure over a similar time frame.

The relative strength index has crossed half, meaning there were more buyers than sellers at press time. Bitcoin price was above the 20-SMA line, which also signaled that buyers are driving the price momentum in the market.

Related Reading | TA: AVAX is struggling to hold resistance above $40

Bitcoin price hits $23,300, will the bearish thesis be reversed?
Bitcoin flashed a buy signal on the 4-hour chart | Source: BTCUSD on TradingView

BTC’s main indicators have shown steady bullish momentum. As soon as the buyers returned, the signal to buy the coins also appeared. Convergence of Moving Averages Divergence shows price momentum and direction in the market.

The MACD went through a bullish crossover and displayed a tiny green signal bar that is associated with a buy signal.

The Directional Movement Index reads the price direction and whether the momentum is getting stronger. According to the DMI, the +DI line was above the -DI line which signals positive price action. The Average Directional Index (red) however was losing strength as it fell near the 20 mark, showing weak price momentum.

Related Reading | Why the Crypto Fear and Greed Index Points to a Sustained Recovery

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